THE UNITED REPUBLIC OF TANZANIA NATIONAL FIVE YEAR DEVELOPMENT PLAN 2021/22 - 2025/26 “Realising Competitiveness and Industrialisation for Human Development” MINISTRY OF FINANCE AND PLANNING June 2021 THE UNITED REPUBLIC OF TANZANIA NATIONAL FIVE-YEAR DEVELOPMENT PLAN 2021/22–2025/26 Realising Competitiveness and Industrialisation for Human Development MINISTRY OF FINANCE AND PLANNING JUNE 2021 “My call to Tanzanians, let us collaborate, unite and be one in building our Nation. Personally, I believe, with love, solidarity and mutual respect, and with the help of GOD, we will be able to get to where we all aspire to be.” Mama Samia Suluhu Hassan, President of the United Republic of Tanzania addressing the 12th Parliament of the United Republic of Tanzania, 22 April 2021. “Let me assure you that we will implement all strategic projects and develop new projects and fortunately we have included all strategic projects in the Five-Year National Development Plan 2021/22 - 2025/26 which we will start implementing in July this year. Therefore, I am confident that all projects will be implemented as planned in the sense of efficiency while focusing on the efficient use of financial resources”. Mama Samia Suluhu Hassan, President of the United Republic of Tanzania, Labour Day Celebrations, 01 May 2021 KEYNOTE As our country achieves the status of a middle-income economy, the impetus is placed on continuing It is with a great privilege and honour that I introduce to build a Competitive and the Third National Five Year Development Plan (FYDP Industrial Economy for Human III; 2021/22 – 2025/26). The Plan is a continuation of Government’s efforts in achieving the goals we Development to achieve the set in the National Development Vision 2025 of our objectives of the vision with the enduring exertion to further improve the standard of following qualities: improving the living for all Tanzanians. living conditions of Tanzanians; My fellow Tanzanians, we should understand that later the existence of peace, security this year (9th December 2021) our country will celebrate sixty (60) years of our independence as a nation, and and unity; good governance fifty-nine (59) years as a Republic. Since we gained and the rule of law; the existence our independence, we have continued to translate our political emancipation into socioeconomic of an educated and learning freedom for human development. We believe that society; and building a strong and freedom and development are closely related and competitive economy. interdependent. That is, without freedom one cannot have development, and without development it is obvious that one’s freedom will be lost. The Sixth Phase Government under my leadership, recognizes the inseparability of freedom and development, which has guided our history and national development efforts. Indeed, in order to effectively translate the political independence into the development of all Tanzanians, we realised that protecting our freedom is our sole responsibility, and we can best protect it through self-reliance. Furthermore, self-reliance comes from our own home-grown efforts and capabilities, while at the same time we proactively learn success stories from abroad, to achieve the development we define and seek. By recognising that inclusive development is an essential prerequisite for sustainable National prosperity, we have prepared strategies that spur broad-based development, while aiming at ensuring the development resulting from our efforts that benefit all Tanzanians. The National Development Vision 2025 has been implemented through various Programs and The Long-Term Perspective Plan 2011/12 - 2025/26 whose implementation was divided into three phases of the Five-Year National Development Plans. The First Five Year National Development Plan 2011/12 - 2015/16 had a theme of unleashing growth potentials by de-bottlenecking binding constraints to growth. The Second Five Year National Development Plan 2016/17 - 2020/21 focused on nurturing industrialisation for economic v transformation and human development. The Third and final Five-Year National Development Plan 2021/22 - 2025/26 have a theme of realising competitiveness and industrialization for human development that aims to increase efficiency and productivity in manufacturing using the resources available in abundance within the country. It should be noted that, this Plan is the final Plan in the implementation of the Tanzania Development Vision 2025 as the National overall development framework. As our country has achieved the status of a middle-income economy which is an incentive that is placed on continuing to build a Competitive and Industrial Economy for Human Development to achieve the goals of the Vision with the following attributes: improving the living conditions of Tanzanians; the existence of peace, security and unity; good governance and the rule of law; the existence of well - educated and learning society; and building a strong and competitive economy. Our country’s economy has continued to be strong and resilient that is supported by prudent micro and macro-economic policies, where the FYDP II implementation evaluation has shown that economic growth averaging about 6.9 percent throughout the period while inflation rate averaged at less than 5 percent during the period between 2016/17 2020/21. The Nation maintained adequate levels of foreign exchange reserves as well as sustainable national debt and a stable financial system, despite having a global pandemic of COVID-19 that affected economies of various countries in the world. Notwithstanding the successes we have achieved due to the existence of effective policies that aimed at strengthening the economy, our country still continues to witness poverty. In addition, income and expenditure disparities continue to exist in our communities, being as one of the major risks in achieving the intended goals of the National Development Vision. Among the reasons for the slowdown of attaining the intended targets include: climate change including floods that affected basic infrastructure; outbreak of diseases including COVID-19 that affected trade and investment; low productivity and limited growth of primary sectors; limited private sector participation in various development activities; and changes in world oil prices that affected the operation of various economic activities. The Third Plan focuses on addressing them and establishing a sustainable framework that will enable to achieve the goals of the National Development Vision. Areas of inspiration in the Plan include: Increasing the country’s capacity for production; building a competitive economy that will stimulate the country’s participation in trade and investment; and stimulate human development. In achieving the priority areas of the Plan, the Government intends to take solid steps in: improving key productive infrastructures including roads, railways, water and air transport as well as reliable access to energy; continue to strengthen the business and investment enabling environment through effective policies to facilitate free private sector competition; and to improve and strengthen education and training systems, including reforming the education curriculum in line with labour market demand as well as integrating research and development with productive economic activities. Efforts to improve the business and investment enabling environment will focus on shortening procedures and easing regulations for starting and operating businesses; simplifying investment procedures by establishing one stop service centres to reduce bureaucracy and corruption; reducing barriers for investors including work permits for specialized professionals; vi “Realising Competitiveness and Industrialisation for Human Development ” vii and devise friendly approaches of revenue collection and expenditure control in accordance with laws and regulations. In addition, the Government, recognizing the In achieving the priority significance of international trade and foreign investment, areas of the Plan, the will continue to strengthen and promote relations with other nations, regional communities and international Government intends institutions as well as deepening the implementation of to take solid steps in: economic diplomacy policy. improving key productive The Third Plan has set ambitious goals that are the infrastructures including foundation of the nation’s long-term success. To achieve this, the contribution of every citizen and development roads, railways, water and partners is needed. In addition, Government institutions air transport as well as must work together to carry out their responsibilities reliable access to energy;. efficiently and effectively. Similarly, the Government will provide cooperation to the Private Sector which has been given special importance in implementing this Plan. Moreover, I guarantee and reaffirm that the Government is strongly committed to ensuring that the discipline and vigour, shall be considered and emphasized throughout its implementation. Fellow Tanzanians, I conclude my message by emphasizing that the history of our Nation, reminds us of many examples of great potential when we come together to implement our Plans. Therefore, everyone should increase efforts, accountability and patriotism in fulfilling his/her responsibilities so that the goals of the National Development Vision 2025 can be achieved. The work continues. GOD BLESS AFRICA, GOD BLESS TANZANIA! H.E Samia Suluhu Hassan THE PRESIDENT OF THE UNITED REPUBLIC